A machine costing $215,400 with a four-year life and an
estimated $19,000 salvage value is installed in Luther Company’s
factory on January 1. The factory manager estimates the machine
will produce 491,000 units of product during its life. It actually
produces the following units: 121,900 in Year 1, 123,500 in Year 2,
121,200 in Year 3, 134,400 in Year 4. The total number of units
produced by the end of Year 4 exceeds the original estimate—this
difference was not predicted. (The machine cannot be depreciated
below its estimated salvage value.)
Required:
Compute depreciation for each year (and total depreciation of all
years combined) for the machine under each depreciation method.
(Round your per unit depreciation to 2 decimal places.
Round your answers to the nearest whole dollar.)
Ans:
A |
Cost |
$ 215,400.00 |
B |
Residual Value |
$ 19,000.00 |
C=A - B |
Depreciable base |
$ 196,400.00 |
D |
Life [in years] |
4 |
E=C/D |
Annual SLM depreciation |
$ 49,100.00 |
Year |
Book Value |
Depreciation expense |
Ending Book Value |
1 |
$ 215,400.00 |
$ 49,100.00 |
$ 166,300.00 |
2 |
$ 166,300.00 |
$ 49,100.00 |
$ 117,200.00 |
3 |
$ 117,200.00 |
$ 49,100.00 |
$ 68,100.00 |
4 |
$ 68,100.00 |
$ 49,100.00 |
$ 19,000.00 |
TOTAL |
$ 196,400 |
A machine costing $215,400 with a four-year life and an estimated $19,000 salvage value is installed...
A machine costing $212,200 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 483,000 units of product during its life. It actually produces the following units: 122,400 in 1st year, 123,300 in 2nd year, 121,500 in 3rd year, 125,800 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted....
A machine costing $213,800 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 487,000 units of product during its life. It actually produces the following units: 122,500 in Year 1 124,300 in Year 2.120,400 in Year 3, 129,800 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate--this difference was not predicted. (The...
A machine costing $215,800 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 492,000 units of product during its life. It actually produces the following units: 123,000 in Year 1, 123,200 in Year 2, 120,800 in Year 3, 135,000 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate-this difference was not predicted....
A machine costing $212,600 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 484,000 units of product during its life. It actually produces the following units: 123,100 in Year 1, 123,500 in Year 2, 121,000 in Year 3, 126,400 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate—this difference was not predicted....
A machine costing $216,200 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 493,000 units of product during its life. It actually produces the following units: 122,600 in Year 1, 122,600 in Year 2, 121,000 in Year 3, 136,800 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate—this difference was not predicted....
A machine costing $213,000 with a four-year life and an estimated $17,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 490,000 units of product during its life. It actually produces the following units: 123,200 in 1st year, 123,800 in 2nd year, 120,400 in 3rd year, 132,600 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted....
A machine costing $216,600 with a four-year life and an estimated $19,000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 494,000 units of product during its life. It actually produces the following units: 121,700 in 1st year, 123,000 in 2nd year, 121,500 in 3rd year, 137,800 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate-this difference was not predicted....
A machine costing $207,200 with a four-year life and an estimated $16.000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 478,000 units of product during its life. It actually produces the following units: 122,100 in Year 1,124,000 in Year 2, 119,800 in Year 3, 122100 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate--this difference was not predicted. (The...
A machine costing $207,200 with a four-year life and an estimated $16.000 salvage value is installed in Luther Company's factory on January 1. The factory manager estimates the machine will produce 478,000 units of product during its life. It actually produces the following units: 122,100 in Year 1,124,000 in Year 2, 119,800 in Year 3, 122100 in Year 4. The total number of units produced by the end of Year 4 exceeds the original estimate--this difference was not predicted. (The...
A machine costing $214,000 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 490,000 units of product during its life. It actually produces the following units: 122,400 in 1st year, 124,300 in 2nd year, 120,700 in 3rd year, 132,600 in 4th year. The total number of units produced by the end of year 4 exceeds the original estimate—this difference was not predicted....